Types of Retirement Plans

  • 401(k) Plans
  • Profit Sharing Plan
  • Cross Tested / New Comparability Plans
  • Deferred Compensation Design and Funding
  • ESOP's
  • Defined Benefit Pension Plans
  • Cash Balance Plans
  • Davis-Bacon / Prevailing Wage Plans
  • 403(b) Plans
  • 457 Plans
  • Simple IRA


A qualified retirement plan available to eligible employees of companies. 401(k) plans allow eligible employees to defer taxation on a specific percentage of their income that is to be put toward retirement savings; taxes on this deferred income and on any earnings the account generates are deferred until the funds are withdrawn—normally in retirement. Employers may match part or all of an employee’s contributions. Employees may be responsible for investment selections and enjoy the direct tax savings.

There are many variables to 401k plans to customize your program. These include Safe Harbor contributions and Roth deferrals. We work with you to determine which design best meets your needs.

Profit Sharing Plan

A defined-contribution plan under which employees share in company profits. The funds within the plan accumulate tax deferred.

Cross Tested / New Comparability Plan

A new comparability or 'cross-tested' plan is an employer-sponsored, defined contribution retirement plan, or a combination defined contribution plan and a cash balance plan, which favors older, long-term employees. Usually these employees are closer to retirement.

Deferred Compensation 

Deferred Compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was actually earned. Examples of deferred compensation include pensionsretirement plans, and employee stock options. The primary benefit of most deferred compensation is the deferral of tax to the date(s) at which the employee actually receives the income.


A defined-contribution plan that provides a company’s workers with an ownership interest in the company; usually as shares of company stock.

Defined Benefit Pension Plan

A retirement plan under which the benefit to a retiring employee is defined. Defined benefit plans are normally funded by employer contributions.

Cash Balance Plan

A pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest charges. A cash balance pension plan is a defined-benefit plan.

Davis-Bacon / Prevailing Wage Plan

It is an IRS Approved Retirement Program designed specifically for open shop contractors who work on Davis-Bacon, State Prevailing Wage Jobs or Service Contracts.

403(b) Plans

A 403(b) plan is similar to a 401(k). A 403(b) is a qualified retirement plan available to employees of non-profit and government organizations. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.

457 Plans

A non-qualified, deferred compensation plan established by state and local governments and tax-exempt governments and tax-exempt employers. Eligible employees are allowed to make salary deferral contributions to the 457 plan. Earnings grow on a tax-deferred basis and contributions are not taxed until the assets are distributed from the plan.

Simple IRA (Savings Incentive Match PLan for Employees)

A Simple IRA is a retirement plan that may be established by employers, including self-employed individuals (sole proprietorships and partnerships). The SIMPLE IRA allows eligible employees to contribute part of their pretax compensation to the plan. This means the tax on the money is deferred until it is distributed. This contribution is called an elective-deferral or salary-reduction contribution.

Employers are required to make either matching contributions, which are based only on elective-deferral contributions made by employees, or non-elective contributions, which are paid to each eligible employee regardless of whether the employee made salary-reduction contributions to the plan. For a matching contribution, the employer's contribution may match the employee's elective-deferral contribution dollar for dollar, up to a maximum of 3% of the employee's compensation.

SEP IRA (Simplified Employee Pension Plan)

A retirement plan that an employer or self-employed individuals can establish. The employer is allowed a tax deduction for contributions made to the SEP plan and makes contributions to each eligible employee's SEP IRA on a discretionary basis.  Contributions to SEP IRAs are immediately 100% vested, and the IRA owner directs the investments.

SARSEP IRA (Salary Reduction Simplified Employee Pension Plan)

A Salary Reduction SEP-IRA is a tax-deferred retirement plan provided by small businesses with fewer than 25 employees. Both the employees and the employer can make contributions to SARSEP-IRAs. The contributions are made pre-tax through salary reduction and grow tax-deferred along with any investment earnings until distribution, usually at the time of retirement.

Current tax laws do not permit employers to establish new SARSEP plans, new employees may be added to an existing plan and SARSEP IRAs are subject to the same rules that govern a Traditional IRA.